UK Job Vacancies Hit Decade Low as Payrolls Fall in August
The Office for National Statistics reported that UK job vacancies dropped to 707,000 in May–July 2026, the lowest level in over a decade outside the pandemic. Payrolled employees fell by 13,000 in July, with economic uncertainty and higher labour costs dampening hiring.
The latest labour market figures released by the ONS on 18 August 2026 show vacancies at 707,000, down 0.8% on the quarter and the lowest level outside the pandemic since September–November 2014. Payrolled employees dropped 13,000 in July after a similar fall the previous month, surprising economists who had expected no change.
The data reveals a severely weakened recruitment environment. The largest vacancy decreases occurred in human health and social work activities (down 5,000) and education (down 4,000). Meanwhile, there are now 2.5 unemployed people per vacancy, a ratio unchanged since July–September 2025.
Wage Growth Split by Sector
Public sector regular pay grew 6.1% year-on-year, while private sector pay grew only 2.8%—the lowest rate since August–October 2020. This disparity reflects NHS pay catches playing a one-off boost in the public sector, whereas private employers face margin pressure.
For expat jobseekers: If you're hunting for UK employment, understand that competition is intense—fewer roles mean employer pickiness about qualifications. Work-visa-sponsored roles remain concentrated in healthcare and tech. With vacancy ratios worsening, now is the time to strengthen your application profile, secure pre-employment checks (including right-to-work verification), and target sectors that are still hiring, particularly public-sector roles and specialised health professions.
Sources
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